India's inflation tanks to record low, boosting December rate-cut hopes

On November 12, 2025, India reported a record low inflation rate, a development that has sparked optimism regarding a possible interest rate cut in December. This decline is significant as it may lead to a more favorable economic environment, potentially easing financial burdens on consumers and stimulating business investments. The connection between inflation rates and monetary policy is critical; lower inflation often prompts central banks to reduce interest rates to encourage spending and investment. As India navigates its economic landscape, the implications of this inflation drop could resonate across various sectors, influencing everything from consumer confidence to investment strategies.